Maine, New Brunswick ink accord to
cooperate on electricity links

The leaders of Maine and New Brunswick agreed Friday
to explore ways to enhance cooperative efforts to
expand their electrical interconnections.

Gov. John Baldacci and Premier Shawn Graham signed
a memorandum of understanding that lays out a timeline
for such cooperation.

The electricity agreement came as Maine has been
looking at the possibility of leaving the New England
power grid and establishing power-swapping arrangements
with neighboring provinces in Canada.

"Both Premier Graham and I have the privilege of
living in communities rich in natural resources, like
wind and tidal energy, that can generate emission-free
electricity," Baldacci said.

"We also both produce an electricity surplus and
want to ensure that we pay competitive prices for
electricity," he said.

Baldacci said that despite Maine's surplus, it has
been forced to shoulder the burden of transmission
and capacity costs for other New England states.

He said that because of inequities in the current
arrangement with power grid manager ISO New England,
he has a responsibility to think beyond the six-state
region and look to Maine's neighbors to the north.

A study by the Public Utilities Commission found
no legal, economic or technical barriers to pursuing
an electricity partnership with New Brunswick as an
alternative.

Baldacci said the partnership's emphasis on developing
an expanded clean energy market could help curb global
warming by reducing carbon pollution.

Graham said the agreement positions New Brunswick
as an energy hub for Atlantic Canada and New England.

Construction began in November on a 345-megawatt
transmission line to improve New Brunswick's ability
to export electricity to the United States. That line
is in addition to an existing 700-megawatt line that's
about 30 years old.

The provincial utility NB Power is planning to spend
$1.5-billion to refurbish the existing Point Lepreau
nuclear power plant, and the New Brunswick government
has announced it will study the feasibility of building
a second reactor.

The memorandum of understanding set a deadline of
June 1 to complete an overview of the study and of
Jan. 1 to present a final report to the state and
provincial governments.